PRESS DIGEST - Philippine newspapers - July 23

MANILA, July 23 (Reuters) - These are the leading stories in Manila newspapers on Wednesday. Reuters has not verified these stories.

- The Cagayan Export Zone has replaced Subic Freeport as the place where imported second luxury vehicles enter the country, according to a report of the American Chamber of Commerce. (PHILIPPINE DAILY INQUIRER)

- Power distributor Manila Electric Co MERB.PS is seeking to recover 12.7 billion pesos ($285 million) in cost under-recoveries which, if approved, would hike electricity rates and at the same time increase the dividends paid out to the company's stockholders. (PHILIPPINE DAILY INQUIRER, MALAYA, MANILA STANDARD TODAY, THE MANILA TIMES)

- The Supreme Court has ordered flag carrier Philippine Airlines [PHL.UL] to reinstate 1,400 flight attendants and stewards it dismissed illegally in 1998. (PHILIPPINE DAILY INQUIRER, MANILA STANDARD TODAY, THE MANILA TIMES, BUSINESSWORLD, BUSINESSMIRROR)

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BUSINESS

- Business favours a cut in the value-added tax (VAT) from 12 to 10 percent, the original rate when the system was adopted in 2002, over the removal of VAT on oil and power, an officer of the influential Makati Business Club said. (MALAYA)

- Government borrowings dropped by 4 percent in the first six months of the year to 243 billion pesos, tamed by strong revenues and under-spending, data from the Bureau of Treasury showed. (THE PHILIPPINE STAR, (BUSINESSMIRROR, BUSINESSWORLD, THE MANILA TIMES, PHILIPPINE DAILY INQUIRER)

- The Philippine central bank said robust economic demand would keep the economy buoyant despite fast-rising consumer prices, which gives it room to further raise benchmark interest rates. (PHILIPPINE DAILY INQUIRER)

($1 = 44.61 Philippine pesos)

(Reporting by Karen Lema)