THE DISCUSSION ON THE GROWTH OF CORPORATE ZAKAT COLLECTIONS AND IT ISSUES: A CASE STUDY IN PPZ MAIWP, KUALA LUMPUR

Abstract

The study on the growth of corporate Zakat collections and its issues in PPZ-MAIWP, Kuala Lumpur, highlights the decentralization of Zakat management in Malaysia. The federal constitution defines Malaysia as a constitutional monarchy, with the division of powers between the federal and state governments. Zakat, a fundamental pillar of Islam, falls under the jurisdiction of the states, which have implemented decentralization in their organizational structures. The study compares the Zakat collection achievements in five Malaysian states: Johor, Perak, Selangor, Penang, and the Federal Territory. It finds that decentralization has a significant impact on Zakat collection, particularly in terms of providing high-tech payment channels. The study suggests that decentralization can improve the Zakat implementation system, especially in states that have established subsidiaries. The findings indicate that while decentralization does not necessarily guarantee higher collection rates, it can enhance the overall efficiency of the Zakat collection system. The study concludes that decentralization is a crucial step in improving Zakat collection and distribution, and it recommends that all MAINs in Malaysia consider implementing decentralization in their respective states.