Moderating Effect of Perceived Behavioral Control on Islamic Tax (Zakah) Compliance Behavior among Businessmen in Yemen

Abstract

Zakah (Islamic tax) in Islam is considered to be one of the fundamental mechanisms for assistance of poverty among Muslim societies. Although Zakah plays a vital role for the survival of low-income earners (Asnaf) in Muslim countries, the Zakah collection remains low in these countries, especially in Yemen. Prior studies have elucidated that perceived behavior control (PBC) can assist to improve human behavioral intention. The main objective of this study is to extend the previously reported results by showing how different degrees of PBC have a potential influence on Muslim businessmen’s attitude and subjective norms relating to Zakah payment in forming intention to comply with Zakah. Using data collected from 202 Yemeni businessmen through self-administered survey, the results of multiple regression analysis revealed evidence of a significant interaction between (1) attitude and PBC, and (2) subjective norms and PBC in relation to behavioral intention; such that attitude and perceived norms were more strongly associated with intention to comply with Zakah among businessmen reporting higher levels of PBC. The findings are relevant to practitioners and policymakers in the field of Zakah and human behavior, particularly in Muslim majority countries. Future directions and recommendations for improving PBC are suggested.

Keywords:

• Business Zakah
• compliance intention
• theory of planned behavior
• perceived behavioral control
• charity
• subsidy payments

Acknowledgments

The authors would like to express thanks to Nahd Developmental Foundation, Yemen for its continued financial support in completing this research.