Government raises ministers’ car cap to R1.1m, but can’t say what it costs taxpayers
· Citizen
National Treasury has increased the official vehicle threshold for ministers and premiers by 37.5%, yet admits it has no consolidated figure for what executive perks actually cost the public.
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The price cap for official vehicles for ministers and premiers has been increased from R800 000 to R1.1 million, a move the opposition party Bosa says is “offensive to millions of South Africans” as citizens cope with a R3-per-litre fuel hike.
The increase, which took effect in July 2025 under the government of national unity, was confirmed by Finance Minister Enoch Godongwana in a written parliamentary reply to Bosa MP Nobuntu Hlazo-Webster.
Why National Treasury says the increase was unavoidable
In his reply, Godongwana explained that annual threshold adjustments had not been made since 2020 due to fiscal consolidation measures, with the last revision dating back to the 2019 Medium-Term Budget Policy Statement.
Treasury’s own internal analysis found that inflation had significantly eroded the value of the R800 000 cap over five years, making it increasingly difficult for departments to procure suitable vehicles through the government’s Transversal Contract.
The minister noted that the R1.1 million ceiling, which includes VAT, security upgrades, and maintenance plans, should not be treated as a target price.
“Departments are allowed and encouraged to use their own discretion to procure vehicles for official use that cost less than the price threshold if such vehicles are available,” Godongwana stated in his reply.
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Bosa: Government can set luxury car prices but cannot account for them
What has drawn sharp criticism, however, is the treasury’s admission that it holds no consolidated figure for the total annual cost of official vehicles and related executive perks across government.
Procurement is handled on a decentralised basis across national and provincial departments, with costs only reported in individual departmental annual reports at year-end.
Hlazo-Webster said the contradiction was glaring. “Government can calculate the rising cost of luxury vehicles for politicians, but cannot quantify the total burden these perks place on public money,” she said.
Bosa described Godongwana’s response as evasive. “The minister effectively held his hands up in the air, shifting responsibility, deflecting, and avoiding a clear answer,” Hlazo-Webster said.
She added that the situation amounted to “a blank cheque for political elites to be driven around in the lap of luxury while citizens are forced to count every kilometre and every rand just to get by”.
Calls for accountability and reform
Bosa is now calling on the minister of finance to publish a full consolidated account of all executive perks, including official vehicles, review and reduce these benefits in line with current fiscal constraints, and prioritise relief for ordinary South Africans.
“While South Africans count every litre of fuel, government is counting none of the cost for themselves and their friends,” Hlazo-Webster said.
The party framed the issue as one of broader governance failure.
“You cannot manage what you do not measure, and treasury’s inability to provide a full cost of executive perks undermines any claim to responsible financial management,” she said.
“In a time of deep economic strain, leadership should be defined by restraint and a clear alignment with the realities facing people.”
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