I just want to know whether retagging questions using retagging privilege earns points to the editor?
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It can. Retagging in itself does not gain you reputation. Suggested edits gain you reputation.
If you do not yet have the retag privilege, then any tag edits you make, even if it's only edits to the tags, will generate a new suggested edit which must be peer reviewed. If that edit gets accepted, then you gain +2 reputation.
If you do have the retag privilege and only edit the tags, then your edit goes through immediately and no suggested edit is ever created, which means no reputation gain. You would have to edit something else in the body or title along with the tags in order to generate a suggested edit.
Keep in mind, also, that you can only gain a maximum of 1,000 reputation from suggested edits.