The Growth Trend Of Zakat Collection Based On Gold Price, Nisab And Macroeconomic Variables

Zakat as the third pillar of Islam forms social security for the poor and needy. Zakat also develops a balanced economic growth through redistribution of wealth in society, to purify wealth and for spritual development. Zakat is an instrument fund that is so dynamic and recognized as one of the proper methods to measure the economic growth. This paper analyzes percentage growth trend of the zakat collection in Selangor based on gold price, nisab, Gross Domestic Products (GDP) and Inflation Rate. Percentage growth of each zakat collection, gold price, nisab rate and macroeconomic variables are illustrated graphicaly to show the yearly trend of zakat collection in relation to gold price, nisab and macroeconomic factors. Based on the growth trend, macroecnomic factors such as GDP shows an increasing positive trend together with zakat collection and inflation shows an increasing negative trend together with zakat collection. Nisab on zakat collection also shows an increasing negative trend together with zakat collection. The findings support the fact that zakat collection moves in trend in relation to other external factors such as GDP and inflation and internal factors such as nisab on zakat collection. The percentage growth trend quantifies the rate of growth over a specified period, thus zakat institution can predict future zakat collection based on the nisab and macroeconomic factors. The percentage growth trend in zakat collection can be used to plan for zakat distribution to Asnaf (beneficiaries) more efficiently especially during economic crisis period such as Covid-19. The zakat collection growth trend is an important financial planning measure to sustanin socio-economic justice and equitable distribution of income and wealth of a nation.