The official newspaper Granma said the decision to allow cars to be imported for sale at market prices on the island was taken yesterday by Cuba's council of ministers.
It said the decision will gradually free up retail sales of all manner of vehicles -- automobiles, vans, trucks and motorcycles -- and ends the practice of granting some Cubans special permission to bring in vehicles as a privilege.
Granma acknowledged the so-called "letters of authorisation" issued by the transport ministry had generated "resentment, dissatisfaction and, in not a few cases ... (were) a source of speculation and enrichment."
Opening Cuba's domestic car market to imports is likely to have fateful consequences for the lovingly maintained 1950s Chevys, Fords and Pontiacs that have survived a 50-year-old US embargo.
But the changes are a long-awaited element of President Raul Castro's attempts to gradually liberalise Cuba's Soviet-style economy.