Switzerland needs to burnish its appeal to multinationalsby presenting a simplified plan to lower corporate tax ratesafter voters rejected proposals they feared would squeeze publicservices and shift the fiscal burden onto individuals.

Voters rejected the reform package by 59% to 41% Sundayfollowing more than a decade of pressure on Switzerland from theEuropean Union to scrap tax breaks for multinationals.

The Swiss government, which warned rejecting tax reform woulddrive foreign companies away, has yet to present a Plan B.Lawmakers need to plug that gap by discarding the fiscalconcessions that alienated voters and focus on the core objectiveof aligning tax rates for local companies and multinationalsat a competitive level, said Thierry Boitelle, a lawyer at BonnardLawson in Geneva.