"The product should be withdrawn from circulation to preserve the health of Venezuelans," said Health Minister Jesus Mantilla.
The government, however, failed specify what were the exact 'harmful' effects caused by the drink.
Reacting to this Coca Cola said that the drink did not contain any harmful products and that production of Coke Zero in Venezuela will be stopped.
This move is being seen as the part of the Hugo Chavez's drive to nationalise the economy.
Venezuelan president, Chavez has been a vocal about his criticisms against America and what he has, in the past, called 'American Imperialism'. So, this ban has also raised speculations if it is the part of the president's Anti-US campaign.