Abstract The government needs funds to finance its activities. This fund is part of the revenue that has been collected from various sources. Local government, like Khulna City Corporation - holding tax, Transfer of Immovable Property fee, trade license fee, advertisement fee, etc are the main sources of income. There are 6 City Corporations and 298 municipalities. Population was nearly 13 crore in the year 2001 and it will be not below 15 crore in 2010. So, financial support can be widened through strengthening revenue earnings with the help of Good Governance. This study aimed to find out the causes of the low revenue earnings of Khulna City Corporation. Internal taxes, fees and rates are added to the internal revenue. But due to low levels of services and mismanagement, unwillingness to pay tax is increasing day by day. Over the world, where developed countries can not achieve their target of revenue earning with quality of services and facilities, it is unusual that Khul