Tattooist Andy Millard fears a national register of practitioners would drive people into backstreet studios, making them vulnerable to harm.
Such places could operate out of kitchens using equipment bought online.
The Welsh government wants licensed practitioners to meet a standard of care and hygiene.
But former Army medic Mr Millard, from Builth Wells in Powys, who has been practising for more than 30 years, said: "If they raise the bar too high, all that adds into the cost.
"It's going to be passed on to the client. It makes it easier for people then to decide 'do I go to a studio or do I go see the guy down the road because it's a hell of a lot cheaper?'"
Julie Barratt, director of the Chartered Institute of Environmental Health in Wales, said: "Unless finance follows function, that is there is new money for new burdens, this work may not get done.
"That is highly undesirable. The powers wouldn't be being given if there wasn't a need and there clearly is a need."
The Welsh government has said councils will be able to charge licence fees to recover costs and that those fees "should be retained by the enforcing department to offset the cost of providing the service".
New plans aimed at improving standards in the tattoo and piercing industries in Wales could have the opposite effect, it has been claimed.