The government has proposed to use Permanent Account Number(PAN) as a familiar identifier for all business establishments using the digital systems of various government agencies. In the Union Budget for FY23, the government introduced this proposal to improve the ease of doing business and help the regulators collate and process the data.

Business establishments are required to have PAN, which will be used as a common identifier for all Digital Systems of specified government agencies, the finance minister said in her union budget speech. Currently, every government portal uses different kinds of documents as the primary identifier for data. Also, with a common identifier, the government bodies will be able to process the data.

In India, the PAN card (Permanent Account Number) is a unique 10-digit alphanumeric identifier assigned by the Income Tax Department to individuals and organizations for tax purposes. The PAN card serves as a single identification number for all financial transactions and can be used for various purposes, including opening bank accounts, applying for loans, and filing income tax returns.

Suppose the budget for 2023 legalizes the PAN card as a single business identification. In that case, it will likely simplify the process for individuals and organizations to conduct financial transactions, as they will only need to provide one identification number instead of multiple ones. This could result in increased efficiency and reduced administrative costs for businesses and individuals.