Costa Rica has relinquished a $30 million loan from the World Bank, originally approved in March 2020, intended for the development of a digital tax system. The decision signifies a reversal of plans to modernize the country’s tax administration through digital means. While the reasons for the cancellation haven’t been officially detailed, the funds were earmarked to improve efficiency and transparency in tax collection. The World Bank confirmed the government’s withdrawal of the credit line. This move raises questions about Costa Rica’s current approach to fiscal modernization and its reliance on international funding for key projects. It remains unclear if the government intends to pursue alternative funding sources or a different strategy for its digital tax initiatives. The cancellation impacts planned upgrades to tax infrastructure and related technological advancements.