Proceedings of the Conference on SDGs Transformation through the Creative Economy: Encouraging Innovation and Sustainability (TCEEIS 2023)

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Shifting Paradigm of Zakat and Tax for Economic Justice in Muslim Society

Authors
Setiawan bin Lahuri1, *, Izlawanie bt Muhammad2, Ainun Amalia Zuhroh3, Husnul Khotimah4
1Postgraduate of Islamic Economics Law, University of Darussalam Gontor, Ponorogo, Indonesia
2Department of Islamic Economic, University Sains Islam Malaysia, Nilai, Malaysia
3Department of Islamic Economics Law, University of Darussalam Gontor, Ponorogo, Indonesia
4Department of Islamic Economic, University of Cordova, Sumbawa, Indonesia
*Corresponding author. Email: binlahuri@unida.gontor.ac.id
Corresponding Author
Setiawan bin Lahuri
Available Online 11 January 2024.
DOI
10.2991/978-94-6463-346-7_38How to use a DOI?
Keywords
— Zakat; Tax; Tax Deduction; Perception
Abstract

basically, The reason for this have a look at is to find out and take a look at the factors outcomes the perception of the Muslim community in Indonesia. This study is taken into consideration as essential so that it will become an additional reference for zakat and tax establishments in Indonesia. The records acquired were taken with the use of a questionnaire with a total number of 543 respondents from all Muslim networks in Indonesia and analyzed the use of Structural Equation Modeling Partial Least square (SEM-PLS) supported through the SmartPLS 3.zero software. The results of this study indicate that the hypothetical value of the Muslim community’s perception of the designed tax deduction zakat can be tested. This can be seen from the results of data analysis which states that the hypothesis has a value of 69%. The results of the analysis of each variable are: religiosity has an OSE value of 0.716, legal and belief aspects have an OSE value of 0.208 satisfaction has an OSE value of 0.102, and has a significant positive effect on tax deduction zakat. All three have t-statistics greater than 0.05, so they can be identified as significant for tax deduction zakat. While the halal aspect of haram has an OSE value of -0.185 this variable has a significant but negative value, where people know about the halal aspect but still violate it. The zakat knowledge variable has an OSE value of -0.006, tax knowledge has an OSE value of -0.015, and motivation has an OSE value of -0.003, where the three variables do not affect tax deduction zakat because it has a t-statistic value smaller than 0.05, namely 0.226, 0.590 and 0.056. So from the results above, it is stated that there is still a lack of knowledge and motivation of the Muslim community towards tax deduction zakat in Indonesia.

Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the Conference on SDGs Transformation through the Creative Economy: Encouraging Innovation and Sustainability (TCEEIS 2023)
Series
Advances in Economics, Business and Management Research
Publication Date
11 January 2024
ISBN
10.2991/978-94-6463-346-7_38
ISSN
2352-5428
DOI
10.2991/978-94-6463-346-7_38How to use a DOI?
Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Setiawan bin Lahuri
AU  - Izlawanie bt Muhammad
AU  - Ainun Amalia Zuhroh
AU  - Husnul Khotimah
PY  - 2024
DA  - 2024/01/11
TI  - Shifting Paradigm of Zakat and Tax for Economic Justice in Muslim Society
BT  - Proceedings of the Conference on SDGs Transformation through the Creative Economy: Encouraging Innovation and Sustainability (TCEEIS 2023)
PB  - Atlantis Press
SP  - 204
EP  - 209
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-346-7_38
DO  - 10.2991/978-94-6463-346-7_38
ID  - Lahuri2024
ER  -