Luxury vehicle threshold for ministers and premiers up

MINISTERS and their deputies in President Cyril Ramaphosa’s Government of National Unity (GNU) executive can now buy luxury official vehicles valued up to R1.1 million after the National Treasury increased the limit from R800 000.

- LOYISO SIDIMBA

National Treasury director-general Dr. Duncan Pieterse revealed the increase in an instruction dated July 11, 2025, and which came into effect on Tuesday this week.

Late former finance minister Tito Mboweni announced the R800 000 cap (inclusive of value-added tax [VAT], maintenance plans and security upgrades) for official cars delivering the medium-term budget policy statement as part of government-wide cost-containment measures.

Treasury increased and adjusted the R700 000 threshold to R800 000 in the 2019/20 financial year.

Pieterse said Mboweni’s successor Enoch Godongwana is required, in terms of the guide for members of the executive (formerly the ministerial handbook), to consult his police, transport and state security counterparts to annually adjust and set the cost limitation for vehicles procured by members of the executive, who also include premiers and MECs.

“The minister (Godongwana) has adjusted the price limit for official vehicles from R800 000 to R1.1m inclusive of VAT, maintenance plans and security upgrades with effect from the date of this Treasury instruction,” stated Pieterse.