Ms. Yuson-Layug said the private sector hopes the Finance department and the Bureau of Internal Revenue (BIR) would settle the issue "amicably," with-out a need to bring the issue to the Supreme Court.

"What we really want is the issue to be settled in the administrative level. We have also appealed to President Gloria M. Arroyo to intervene already and ensure the spirit of the law is fully carried out," Ms. Yuson-Layug said.

"We are not discounting the possibility of us going to the court, but we don’t want that recourse. We understand the BIR and the Finance department are bound by certain targets."

The BIR estimates P28 billion in foregone revenues with full-year implementation of the law.

Republic Act 9504, which took effect last July 6, increases personal and additional exemptions of individual taxpayers, aside from exempting daily minimum wage income earners from income tax.

The BIR and DoF have argued the tax relief law is not retroactive to last January 1, and that only half the total amount for personal and additional deductions can be availed of for computing the income tax for calendar year 2008.

Starting January next year, individual taxpayers can avail of the full exemption benefits and additional deductions.

"If we file a case before the Supreme Court, the rules will be delayed and the regulations won’t be implemented because the employers have to wait for the decision. We like the workers to get the full benefit of the law. It will be counterproductive. It is up to the administrative branch to resolve it," Ms. Yuson-Layug said.

Thirteen other business organizations have joined TMAP in calling for the full-year implementation of the law. These are Action for Economic Reforms, American Chamber of Commerce of the Philippines, Business Processing Association of the Philippines, Employers Confederation of the Philippines, Financial Executives Institutes of the Philippines, Management Association of the Philippines, Makati Business Club, Philippine Chamber of Commerce & Industry, Philippine Institute of Certified Public Accountants, Philippine Inter-island Shipping Association, Philippine Liner Shipping Association, People Management Association of the Philippines, and Public Services Labor Independent Confederation.

"The tax relief package was a promise made by the President instead of a wage increase. It is a relief she offered to our workers. We hope she will be mindful of the commitment. We are not asking for a retroactive application but immediate effectivity with full benefit of the law," Ms. Yuson-Layug said.

In a separate interview, PCCI President Edgardo G. Lacson said the law is "very clear." "It is the implementing rules and regulation trying to defeat the spirit of the law. The PCCI will come up with a resolution to be submitted to the President," he said.