During the second day of the House of Councillors' plenary session, Prime Minister Kishida summarized the party's thinking regarding the revision of the Political Funds Regulation Act and asked questions regarding the political funding party of the Liberal Democratic Party's faction. He expressed his intention to hold discussions with each party.
At the morning plenary session of the House of Councilors, Komeito and Japan Restoration Party took questions.
Komeito representative Yamaguchi commented on the issue surrounding the LDP's faction's political funding party, saying, ``The only way to respond to the overwhelming voice of the people is to revise the Political Funds Control Act and take thorough measures to prevent it from happening again.'' "The public is watching closely to see what kind of reform proposals the Liberal Democratic Party, which has a majority in the House of Representatives, will present in order to bring about certain legal reforms. I hope they will show firm determination."
In response, Prime Minister Kishida said, ``We will hold serious discussions with each party on issues such as improving the transparency and openness of political funds. I will take the lead in working towards restoring the public's trust."
Asada, Chairman of the House of Councilors of Japan Ishin no Kai, said, ``Under current tax laws, profits from political funding parties are exempt from taxation as political funds, and this in itself is a privilege for members of the Diet.'' There are voices saying that it is unacceptable to continue to treat income as tax exempt. "It's a lot, but how do you perceive it?"
In response, Prime Minister Kishida said, ``Receipts from political funding parties do not fall under the category of profitable business under the Corporate Tax Act and are not subject to taxation, but if an individual politician receives political funds, it becomes miscellaneous income under the Income Tax Act. After deducting the necessary expenses, if there is any remaining amount, it will be necessary to file a final tax return.It needs to be handled appropriately in accordance with laws and regulations."