Taxation policy in Greece changed during the second half of the nineteenth century.

Little by little, heavy taxes that burdened rural households were transferred to the low-income urban households. This process culminated in the early twentieth century and was the result of the increase of indirect taxation. These taxes were mostly imposed on consumer goods, to which category also belonged tariffs and stamp duties. It goes without saying that the exposure of poor and rich social groups alike to the same taxation burdens is unjust, particularly for the former; for the latter the burden was trivial.

In addition, the direct taxation of the high-income households and the profits from investment of their capital was relatively small, while they had many chances for tax evasion. In general lines, the state policy was seeking to attract capital especially from Greeks abroad. Obviously it was not interested in the equal contribution (based on income) of state taxation, as the Constitution provided for, through indirect taxation. What was of importance for the governments of the period was the presence and investment of capital in Greece, a fact that would help the development of economy and the increase employment opportunities.

Practically the increasingly heavy taxation was imposed during the reforms of the first Venizelist period, in 1911. It is the period when the Rule of the Law prevailed in Greece and acts concerned with just distribution of tax burdens were introduced. Naturally, high-income households managed, to a large extent, either to evade taxation in the subsequent years or to be under taxed, as was for instance the case with shipowners. However, revenues from direct taxation in the subsequent period and chiefly in the inter-war period conspicuously increased.