Zakat in Business as Economic Catalyst For Ummah: Issues And Challenges Among Muslim Entrepreneur

Abstract

Paying zakat is an obligation for every Muslim who is mukallaf and meets the conditions that have been set as contained in the pillars of Islam. Similar obligations need to be fulfilled by Muslims involved in business activities. The Annual Report published by the Federal Territory Zakat Collection Center (PPZMAIWP) for 2020 shows an increase of 7.76% in total business zakat collection amounting to RM112,947,206.23 in 2019 compared to 2020 of RM114,096,123.42. However, based on statistics by category, zakat collection in business still could not surpass the total in collection of zakat income which amounted to RM471 million (2019) and RM511 million (2020) increased by 8.34%. However, the total zakat payment of businesses showed a significant increase in 2020 of 47.08% compared to the increase in total zakat income payments which showed an increase of only 9.16% recorded in the same year. This situation provides various interpretations among the community on the role of zakat in business in contributing to the economic catalyst of the ummah. Therefore, this study aims to know in more depth about the issues and challenges faced by business zakat payers in fulfilling the responsibilities set out in the pillars of Islam. The study involved focused group interviews on a selected group of Muslim entrepreneurs. The results show some of the current problems and challenges faced before, during and after implementing payment of zakat in business.