Measuring perceptions of Muslim consumers toward income tax rebate over zakat on income in Malaysia

Abstract Purpose – The purpose of this study is to explore the variables that affect Muslim consumers’ perception towardstaxrebateoverzakatonincomeinMalaysia. Design/methodology/approach – A close-ended structured questionnaire was developed and a total numberof236validresponseswerecollectedthroughonlinesurveyfromtheMuslimsresidinginMalaysia. Findings – Thisstudyfoundthathalal-haramaspectofIslamicShariah,legalconsciousnessandreligiosity of Muslim consumers are positive significant factors for growing perceptions towards tax rebate over zakat onincomeinMalaysia. Research limitations/implications – This study will definitely play an important leading role for the policy-makersandacademiciansinunderstandingtheperceptionsofMuslimconsumers. Practicalimplications – ThisstudycanassistzakatandtaxauthoritiesinMalaysiafortakingcorrective actionstoadaptorimprovethecurrentpolicyonthebasisofitsMuslimconsumers’perception. Social implications – The findings of this study can reduce the gap of understanding among Muslims in thesocietybylettingotherpeople’sperceptionstowardstaxrebatethroughzakatsysteminMalaysia. Originality/value – As there are not enough studies in this area, this study will definitely play an important leading role for the countries or policy-makers or concerned zakat or tax institutions all over the world in capitalizing the practices which is highly and positively perceived by the Muslim consumers in Malaysia