Government needs good way to reliably identify its citizens if it wants to provide online services for them. It has to be strong identification anyway because most online services that government provides are sensitive.
Unless this is used for some more malicious purpose than login in to do taxes, I don't see any issue with this. They seem to be allowing it to be used by commercial entities, which might be more concerning, but not necessarily. Depends on what is shared and how authentication is handled. Many commercial entities anyway need your actual identity (like banks) it is much better that instead every single company collecting all information they only need basic information and can use the government service to handle identity verification.