They call it a "Community Improvement Fee."

The Kahkewistahaw First Nation in south-east Saskatchewan has launched a new effort to raise money for local improvements, and it looks very much like the federal Goods and Services Tax.

The Kahkewistahaw Community Improvement Fee, or KCIF, is set at five per cent, the same rate as the GST, and will be administered by the Canada Revenue Agency.

"It is our hope that the funds generated by our Community Improvement Fee will bring much-needed benefits to our community and our members," said Chief Louis Taypotat.

The idea of a local tax on the First Nation was approved in a vote by band members more than a year ago, and has been in the works for a number of years.

The KCIF will operate on reserve following the same basic guidelines of the GST and the Harmonized Sales Tax and will apply to everyone except some outside governments.

The First Nation began collecting the tax last month.