Taxation policy and regulation efficiency on increasing zakat collection: countries comparison analysis

Taxation policy and regulation efficiency on increasing zakat collection: countries comparison analysis

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Purpose - This study investigated the policies RCA Y Adapter over countries, specifically concerning the taxation in its regard with the zakat collection.The aim is to see whether making zakat compulsory helps solving zakat collection problem or not.Method - The study used a descriptive analysis model with a qualitative approach.

The range of data collected in 2006-2017 came from nine countries, namely Saudi Arabia, Kuwait, Sudan, Jordan, Brunei Darussalam, Malaysia, Indonesia, Singapore, Pakistan.Result - The results of this study indicate that Sudan, Brunei Darussalam, Singapore and Pakistan follow a mandatory approach while Malaysia, Kuwait, Indonesia, Jordan and Saudi Arabia follow a voluntary approach.It was also Ice Cube Tray found that a mandatory approach attracted more zakat collection as indicated by the zakat collection ratio.

Implication - Pointing out that mandating zakat by imposing it through regulations helps collect more zakat payments.Originality - This research specifically contributes to studying the tax system in various countries to stimulate the collection of zakat by using a comparative study.