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Starbucks is under pressure to pay £ 20 million in UK taxes over the next two years

Published: 2026-07-12 Author: World Gafei

Last Updated: 2026/07/12, December 7-Under pressure from public opinion, Starbucks, a global coffee chain, said on the 6th that it would pay about 20 million pounds (about 32 million US dollars) of corporate income tax to the British government in the next two years. Starbucks has been operating in the UK for 14 years, with sales totaling more than £ 3 billion, but only £ 8.6 million in taxes, and none in the past three years. Recent media revelations that in order to minimize

Starbucks, a global coffee chain, said on the 6th that it would pay about 20 million pounds ($32 million) in corporate income tax to the British government over the next two years.

Starbucks, which has been operating in the UK for 14 years, has total sales of more than £3 billion, pays only £8.6 million in taxes and has not paid a penny in the past three years. The media recently disclosed that in order to minimize the tax bill in the UK, Starbucks UK paid a large "royalty" to the Dutch branch to use the Starbucks name and coffee formula. The British subsidiary also uses transfer pricing to buy coffee beans from its Swiss subsidiary. In doing so, Starbucks appears to be losing money almost every year. Since the UK corporate income tax is levied on corporate profits rather than turnover, multinationals will not be taxed in the UK if they transfer their profits out of the UK.

Starbucks initially argued that "the UK coffee market is the most competitive and it is difficult for the company to make a profit", but the fact that its 760 stores receive more than 2 million customers a week has not convinced the public and the media, and some lawmakers have accused it of being "immoral". Others boycotted Starbucks. Consumer boycotts and media propaganda hit a sore spot at Starbucks. Nscoff, managing director of Starbucks in the UK, announced yesterday that the company would pay large taxes over the next two years, whether the company was profitable or not, with a total amount likely to reach 20 million pounds.

(responsible Editor: Leo)

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