ISSN: 2222-6990
Open access
Zakat is the most efficient way to help the poor and needy improve their living standards or achieve their 'dharuriyyat’ and ‘hajiyyat’ needs. Furthermore, zakat institutions have been exposed to many challenges that hinder the efficiency of the institutions in administering the zakat distribution including inadequate data records, the shortage of staffing, and geographical factors. Thus, zakat authority introduces a zakat refund known as wakalah that would allow zakat payers to distribute zakat refunds to the asnaf group who are eligible through the return of a certain amount of zakat money paid. Zakat institutions take the initiative to collaborate with financial institutions focused on this study Bank Muamalat Malaysia Berhad (BMMB) as wakil on zakat refund distribution. Therefore, this study aims to explain the issues and challenges in managing zakat refund distribution, especially BMMB, and identify the solutions that the BMMB has implemented in dealing with the issues. Two research methods were used in completing this study; firstly, interviews were conducted with three experts in the field of zakat refund at BMMB. The second method involves a literature review to help explain more precisely. The finding shows issues regarding the account, haul, and rightful beneficiaries in managing zakat refund distribution in BMMB. However, the BMMB managed to overcome the issues with appropriate methods and solutions to perform its duties as a representative on behalf of the zakat institution.
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In-Text Citation: (Razali et al., 2022)
To Cite this Article: Razali, M., Mohd, N., Ahmad, N. A. B., Zahid, E. S. B. M., & Ishak, N. N. (2022). Issue and Challenges on Zakat Refund Distribution. International Journal of Academic Research in Business and Social Sciences, 12(9), 1869 – 1881.
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