“Based on Zakat Selangor, companies experiencing losses do not need to pay zakat. Mydin has been recording losses to the tune of hundreds of million of ringgit in the last few years,” Mydin managing director Ameer Ali Mydin told FMT.

His response comes in the wake of the revelation of a leaked WhatsApp group conversation allegedly involving Selangor mufti Mohd Tamyes Abd Wahid.

Tamyes had allegedly urged Muslims to boycott Mydin, saying the hypermarket chain’s owners were Shia Muslim and had refused to pay zakat.

Tamyes has however denied making the statement.

Ameer thanked Tamyes for clarifying the matter, and said his company still contributes over RM1 million annually in zakat in Terengganu.

Zakat is an obligatory form of tax determined by the taxation of wealth and income.