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The government of Venezuela has decided to close all McDonald's restaurants in the country for 48 hours. This step was taken by the government because the restaurant chain has failed to pay tax in time. As per Jose David Cabello, the restaurant chain has been inconsistent in paying taxes and hence the 115 branches in Venezuela will remain close from Thursday to Saturday, October 11, 2008. The restaurant chain has also issued a statement saying that it will abide by the rules and regulation of Venezuelan government and keep its outlets closed for 48 hours.
Three years ago, the government of Venezuela had ordered to shut down 80 McDonald's restaurants in the country alleging them of failing to follow tax rules. Similarly, Coca-cola and Pepsi subsidiaries in Venezuela had to suffer the stringent regulation of the country. The President of Venezuela, Hugo Chavez is a fierce critic of the US and never fails to implement strict regulations on any US-based company. The government has also taken hard on US oil firms. The current restriction on McDonald is also supposed to be the product of harsh relation of Venezuela with the US.
