President Rodrigo Duterte named the Department of Finance Undersecretary Karl Chua as the new acting Neda chief a few hours after Ernesto Pernia resigned on Friday.
Who is Karl Chua, the new acting Neda chief?
Before his surprise appointment, Karl Kendrick T. Chua was undersecretary for the Strategy, Economics, and Results Group in the Department of Finance. In this capacity, he helps the government achieve its ten-point socioeconomic agenda by ensuring equitable and sustainable financing through tax reform.
Karl Chua completed his MA in economics in 2003 and Ph.D. in economics in 2011 at the University of the Philippines School of Economics, where he specialized in fiscal policy and tax administration.
Prior to joining the World Bank, he was an assistant professorial lecturer of mathematics and economics at the Ateneo de Manila University. He was a consultant for several local and development partner‐funded projects. His first job was in Andersen Consulting/Accenture as a systems analyst.
Before joining the government, he was the senior country economist of the
World Bank office in Manila. In this capacity, he advised the government on strategies and policies to attain more inclusive growth—the type that creates more and better jobs and reduces poverty. He was with the World Bank for 12 years from 2004 to 2016.
Karl Chua is the “poster boy” of TRAIN Law
Chua admits he is a “tax advocate” when he was appointed as DOF Usec in July 2017. He is also known as the “poster boy” of the Duterte administration’s tax reform for acceleration and inclusion or the TRAIN law.
The Tax Reform for Acceleration and Inclusion Act, officially cited as Republic Act No. 10963, is the initial package of the Comprehensive Tax Reform Program signed into law by President Rodrigo Duterte on December 19, 2017. The law decreased personal income taxes, but raised the excise tax on sweetened beverages and fuel.
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Former Neda chief cited “personal reasons” and “differences in development philosophy” with some members of the Duterte Cabinet as the reasons for his resignation.
“In a way quite sudden and unexpected. It’s unfortunate that he resigned,” said George Barcelon, president emeritus of the Philippine Chamber of Commerce and Industry, in a phone interview.
“But I think NEDA is in good hands with Karl. The tax reform, I guess, will still continue, but in terms of the infrastructure projects, I think there will be some tweaks that will happen, more of in line with the current critical situation in COVID-19. The groundwork has been laid down by Secretary Pernia,” he added.