It is all too well that the proposal to include income earned by NRIs, especially those working in the Gulf countries, for the purpose of determining tax liability has met with a premature death. Otherwise, it would have created serious problems both in terms of tax administration as well as compliance.
In the first place, it is a misconception that Gulf NRIs do not pay tax. There may be no formal personal income tax in the countries of their residence, but the governments there charge hefty amounts from every expatriate in the form of levies, visa fees, insurance, sponsorship fees etc. They also have to pay for the well-being of the national citizens in terms of higher cost of services.
Gulf has one of the highest rates for phone and internet connectivity as the public utilities contribute the major chunk of resources for the employment of the locals. In fact, the expatriates are forced to pay a premium on the inefficiency and lack of productivity by the local population in the respective Gulf countries.