Perceptions about the common malpractice of Zakat paying in Bangladesh during Covid-19 pandemic: evidence from the supply side

Abstract

Purpose A nationwide common malpractice in Zakat distribution has been prevailing in Bangladesh for the past few decades. The paper is a groundbreaking effort to investigate the perceptions of the Zakat payers about the common malpractices and to highlight whether any change in the conventional distribution of Zakat has occurred during the Covid-19 pandemic. The study also aims to extract the common perception of the Zakat payers regarding the validity of the changed practices during the pandemic. Design/methodology/approach The study adopts the qualitative research approach allowing an in-depth interview technique based on an unstructured questionnaire schedule to obtain information from the Zakat payers, complemented by the key informant interview with the Islamic Scholars. The study obtained data from Zakat payers administering a purposive sampling technique based on two specified criteria. After coding the information on three main themes, content analysis is used to examine the results. Findings The results reveal that although the Zakat payers dislike the common practices because of some antithetical issues, they still practice the same customs. Moreover, they apportion most of the value of Zakat in purchasing low-quality festive-motive clothes for the recipients. They are ignorant about Islamic law and the validity of such practices. According to scholars, these activities are not a pure system of Zakat provision and unable to alleviate poverty. Amid the Covid-19 pandemic, this practice shifted heavily to buying food items for the poor due to the financial hurdles they confronted during the pandemic. Although no solid argument is deduced from the participants about the exactitude of such distributional change, scholars regard the transformation as beneficial to the afflicted and the impoverished who have been hit by the pandemic, as well as not conflicting with the Zakat legislation. Practical implications The study is a novel contribution to addressing the malpractice in Zakat distribution through receiving practical information from the Zakat payers, which will help produce more in-depth research in Islamic finance. Furthermore, this research will help the government and people raise awareness about the authentic practices of Zakat distribution according to the codes of Shari’ah. Originality/value This study is a pioneering investigation since a scarcity of scholarly works attempted to identify the impact of Covid-19 on the practice of Zakat distribution and the associated perception regarding its Islamic jurisprudence. To the best of the authors’ knowledge, the investigation of common malpractices of Zakat is still unearthed by no former rigorous studies in the context of Bangladesh. The present study bridges this gap and paves a pragmatic research dimension in the Islamic finance.

Effect of Zakat Potential Management on Achieving SDGs: Case of the Indonesian National Amil Zakat Agency

“…It also means the transfer of ownership of the specific property to specific individuals under specific conditions (Wahab & Rahim, 2011) or a transfer of a certain portion of mal (any material things or possessing all kinds of wealth and income) from the wealthy to the poor for redistribution of wealth and income in the society, and to reduce confinement of wealth in few hands which is banned under Islamic law. It purifies or increases or grows a person's wealth can be purified and this lead one's wealth to grow and be increased not only physically; but spiritually as paying zakat leads to an increase of barakah (blessing) of Allah (SW) in one's wealth (Muneeza & Nadwi, 2019;Shirazi, 2006;Islam et al, 2022). Zakat has an extra power not only to stabilize the condition when the economy is in disequilibrium and policies fail to recover and boost incomes immediately but also to enable the distributive allocation that works independently of business cycles and helps stabilize the extremes of business cycles (Efe, 2021;Usmanova, A., Aziz, A., Rakhmonov, D., & Osamy, W., 2022).…”

The national-level potential of Zakat and its integration into the fiscal framework: sector-specific insights from the economy of Bangladesh

“…Zakat’s potential extends beyond religious obligations, making it a viable source of financing for sustainable development goals (SDGs) and supporting social safety net programs for marginalized communities (Islam et al , 2023a). By properly managing Zakat funds, fiscal burdens can significantly be reduced, particularly in countries facing substantial deficits in foreign exchange reserves and resources for the marginalized and impoverished populations (Haneef et al , 2015; Chapra, 2011; The Business Standard, 2022).…”

Zakat accounting and public accountability: Evidence from Indonesia

“…Given its significant contribution to national development, it is imperative for all stakeholders to engage in collaborative efforts, both academically and practically (Setianingsih et al, 2022). While scholarly research on zakat has been extensive, it has predominantly centered around topics such as zakat compliance (Sadallah et al, 2023;Aligarh et al, 2021), zakat payment technology (Islam et al, 2023;Bin Nashwan et al, 2023;Aligarh et al, 2023), and the governance of zakat institutions (Shenkoya, 2023;Sawmar & Mohammed, 2021). Nonetheless, one emerging area in zakat management that remains largely underexplored in the existing literature pertains to public accountability.…”